The best description of a how a central bank like the Federal Reserve makes monetary policy these days is: The central bank aims to stabilize the money supply. The central bank aims to adjust the nominal interest rate in order to hit its inflation target The central bank aims to keep the nominal interest rate stable. The central bank aims to keep inflation as lowas noccible

The best description of a how a central bank like the Federal Reserve makes monetary policy these days is: The central bank aims to stabilize the money supply. The central bank aims to adjust the nominal interest rate in order to hit its inflation target The central bank aims to keep the nominal interest rate stable. The central bank aims to keep inflation as lowas noccible

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer correct explain a b c Don't answer by pen paper
In the Country A, the velocity of money is constant. The growth rate of real GDP is by 6% per year, the money supply grows by 20% per year, and the nominal interest rate is 24%. What is the real interest rate in the in the Country A ?
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Hi, can I get help with this question I'm not sure what to choose? I'm confused base on the graph and I'm not quite sure what statement is accurate. The graph is in the attachments with download data. Here's the question: Why is it important for the central bank to be independent from the part of the government responsible for spending? A. The Federal Reserve is, historically, driven by political ideologies. Allowing it to influence the rest of government could harm its ability to enact effective monetary policy. B. If not independent, the government might be tempted to have the central bank print more money (creating inflation) whenever the government runs a budget deficit. C. If not independent, the government might be tempted to have the central bank print more money (creating deflation) whenever the government runs a budget surplus.
Explain three tools of monetary policy from central bank and how these tools increase and decrease the money supply!
The Fed’s bond holdings increased from $900 billion in 2009 to $4.5 Trillion in 2016. The purpose of the Fed’s decision to increase its bond holdings from 2009 to 2016 was to A. to decrease the reserves in the banking system thus engaging in so called “contractionary monetary policy” needed to contract the level of inflation B. contract the money supply to counteract the high rates of unemployment then existing in the United States C. increase the reserves in the banking system to increase bank lending and aggregate demand. D. engage in expansionary fiscal policy
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I would like to ask how to calculate c and d
The most important feature of a central bank is the size of the money supply it controls. its ability to set fiscal policy. O its operating budget. its independence from government. O its net worth.
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